When one thinks of innovation within the short-term renting sector, Airbnb should immediately come to mind. The company is based on the simple idea of helping people rent out their homes to tourists. This simple idea had brought in a yearly revenue of over $2 billion in just the first 10 years of its life and it's available in every country in the world.
But Airbnb’s immense popularity and benefits have also come with a heap of problems. Many cities cite Airbnb as one of the major factors for increased rent, housing shortages, gentrification, and other disruptive effects of tourism. That’s why Sito Veracruz and his partners went on the ambitious quest to provide a better and fairer alternative: FairBnB.
“I was quite optimistic about Airbnb in the beginning because I saw how platforms like these could spread benefits of tourism to neighbors and communities,” explained Veracruz.
“But I knew we’d need limits and proper regulations to ensure it, which sadly hasn’t happened,” Veracruz added. “What I didn’t foresee how incredibly profit-oriented these types of platforms would be. I didn’t realize so many private players would be in this game and when you see around 20 percent of users are making 80 percent of profit, you know something is deeply wrong.”
After years in development, the first rentals via FairBnB are set to take place in January 2019 in four cities. TNW sat down with Veracruz in Amsterdam, one of the pilot cities, to get a glimpse of how FairBnB plans to make vacation rental ethical and serve local communities.
For Veracruz it’s obvious the Airbnb-model for vacation rental platforms is here to stay, that’s why it’s essential to provide a more beneficial alternative for local communities. According to Veracruz, FairBnB will be able to do that due to its three main difference from Airbnb.
Read more here
Join us in Bangkok the 19th to the 22nd of March for the Property Portal Watch Conference.